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what happens if parents refuse to pay for child?

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Replies to: what happens if parents refuse to pay for child?

  • lookingforwardlookingforward Registered User Posts: 28,685 Senior Member
    After college, let's say you get a 60k job. 4k/month after taxes, maybe less, depending on city taxes...and a 3k debt payment. You could live at home and commute.

    A 90k job? 6k/mo after taxes (again, maybe city taxes.) After the loan, leaves you 3k for housing, food, transpo, and the rest, including a social life. In Manhattan or Chicago, parts of Boston, you'd be strapped.

    For ten years. Please think this through.
  • intparentintparent Registered User Posts: 34,499 Senior Member
    Even if the parent borrows for this kid or spends cash flow, that means no savings or borrowing for the next 2 kids.
  • mom2collegekidsmom2collegekids Forum Champion Financial Aid, Forum Champion Alabama Posts: 83,913 Forum Champion
    edited May 11
    Even if the parent borrows for this kid or spends cash flow, that means no savings or borrowing for the next 2 kids.


    ^^this

    There was a mom who used to post in this for him who borrowed a lot of money to send her first child to NYU. She didn’t think about how that would impact paying for college for her younger children. She was paying back loans while also trying to provide college for her younger children. The younger children were then forced to attend much much much cheaper schools and look for large merits fellowships
  • brantlybrantly Registered User Posts: 3,247 Senior Member
    Do both spouses work? If the $250k is from one spouse's earnings, then the simple solution is for the second spouse to get a job. Let's say spouse gets a job that nets $50k/year. You'll need maybe $10k of that to replace some of the tasks that spouse does at home. More ordering in of meals, more outside cleaning help, maybe babysitting help, maybe an additional car. So then you have $40k for the college bill. Can you cut back enough to fund the additional $30k with current income?
  • mom2collegekidsmom2collegekids Forum Champion Financial Aid, Forum Champion Alabama Posts: 83,913 Forum Champion
    edited May 11
    A rule of thumb for financial aid from Princeton is families pay about 10% of their income. The fact that you aren’t getting any aid suggests that you have a lot of assets or you own other properties or you own your own business.


    Another possibility is that you didn’t apply for aid thinking it would help with admissions
  • 3js3ks3js3ks Registered User Posts: 176 Junior Member
    I would just say no to Princeton. You simply cannot afford it. There are other excellent schools to go to instead that would cost you much less. I would never consider putting my family in financial jeopardy just to say my kid graduated from Princeton.
  • britboynybritboyny Registered User Posts: 11 New Member
    edited May 11
    Princeton by far wasn't the most expensive which is a bright spot here. At least it's the best for value in comparison. Binghampton was 22 and we got a 7k scholarship. All the rest we're private or out of state schools which cost more. Princeton was $47 plus dorm. Nyu was more as was ucla. We earn around 250k. I don't consider that rich. Both parents earn 125k and we live in new York. We have a modest house and do not drive fancy cars. We are lucky we don't struggle but definitely not wealthy.
  • thumper1thumper1 Registered User Posts: 71,058 Senior Member
    edited May 11
    @mom2collegekids

    That 10% of income “rule” for Princeton is not for $250,000 a year incomes
    I ask these questions because my wife and I jointly earn about $250K, a nice salary

    The OP posted this so it seems they both work.

    @britboyny think of it this way...if you can’t pay this $70,000 a year out of your current income...how will you expect your son to pay $3000 a month just in loan repayment on an income that will most certainly be less than 1/2 that amount.
  • thumper1thumper1 Registered User Posts: 71,058 Senior Member
    @britboyny

    How do you figure Princeton at $70,000 a year is a better value than Bing at $14,000 a year? Please explain??
  • thumper1thumper1 Registered User Posts: 71,058 Senior Member
    @britboyny

    Your story doesn’t make sense.

    You say your kid “just got accepted to Princeton”. What does that mean? Princeton sent out acceptances to students in April. Not “just”. The day for deciding to matriculate...or not....was May 1.

    What did your kid do? Did the kid choose Bing? If not...Bing might be off the table for attending this year?

    Did the kid pick Princeton?

    Or did you double deposit which is clearly not permitted per the common ap instructions?

    Where did your kid...or you...commit to matriculate for fall 2018.
  • manyloyaltiesmanyloyalties Registered User Posts: 79 Junior Member
    edited May 11
    You don’t need to get loans from banks. Unless it has changed, Princeton offers its own loan program for parents if you earn less than $500,000 or even higher with multiple kids. Did you ask? Not sure that changes things, but it does reduce the interest rate and also takes the complexity out. And, yes, as far as I know, Princeton is the only school wealthy enough to do this. https://finance.princeton.edu/how-to/tuition-student-billing-l/loan-options/princeton-parent-loan-pro/

    I am little perplexed that you did not even know this, it is right on the finance website.
  • HRSMomHRSMom Registered User Posts: 4,632 Senior Member
    Or just got off wait list?
  • hpcsahpcsa Registered User Posts: 152 Junior Member
    edited May 11
    Being Expats ourselves, I just think this is a common case of a rather well off family getting acquainted with the necessary costs of sending their kids to College in the US, which are indeed rather different from Europe. Nowhere in the original post does it say that the family can not afford to send their son to Princeton, rather the OP is asking general questions about the FA system, financial responsibility and the treatment of incurred debt, if any. Simply pay Princeton from cash flow and liquid assets as you are already paying for your mortgage, which you said happens to be around the same amount/year. Both investments have build in tax benefits which will reduce your tax rate, you might actually move into a lower bracket. Best of luck!
  • manyloyaltiesmanyloyalties Registered User Posts: 79 Junior Member
    Well anyway, princeton will help with loans and tuition payment plans. That is the best option to attend and manage cash flowl
This discussion has been closed.